I noticed something massive happening at Netflix headquarters today. While most of us are busy binging our favorite shows, Netflix just dropped their Q1 2026 earnings, and the numbers are absolutely wild. But here’s the kicker: it’s not just about the money; your Netflix app is about to look completely different by the end of this month.
The “TikTok-ification” of Netflix
If you’ve spent the last year seeing “vertical video” tests on your phone, the wait is over. Netflix is officially launching a vertical video feed globally by late April.
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AI-Powered Discovery: This isn’t just a random scroll. Netflix is using advanced AI to pick the best clips from movies and shows specifically for you.
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Redesign for iOS: This is part of a “major mobile overhaul” to make finding something to watch faster and more immersive.
Why it matters: Netflix is clearly tired of you leaving their app to scroll TikTok when you’re bored. By bringing that “snackable” vertical content inside, they’re betting they can keep you hooked on their ecosystem longer.
Record-Breaking Numbers: The Q1 Snapshot
I dug into the financial sheet, and Netflix is essentially a money-printing machine right now. Despite price hikes, people aren’t leaving—they’re joining.
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Revenue Surge: Q1 revenue hit $12.25 Billion, a 16% jump year-over-year.
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Ad Revenue Explosion: Their ad-supported tier is a hit, representing 60% of all new sign-ups in ad-supported countries. They’re on track to hit $3 Billion in ad revenue alone this year.
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The “Live” Effect: The World Baseball Classic in Japan broke viewing records with 31.4M viewers, proving that live sports is Netflix’s new secret weapon.
AI and “InterPositive”: The Future of Content
Netflix isn’t just using AI for your “Top Picks.” They recently acquired a tech company called InterPositive (founded by Ben Affleck).
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GenAI Tools: They are building tools to help creators tell stories more efficiently.
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Conversational Discovery: They are testing a feature where you can actually talk to Netflix to find a movie, rather than just scrolling.
Analytic Touch: This is a strategic shift. Netflix is moving from being a “video library” to a “tech-first entertainment hub.” Between the new gaming app for kids and video podcasts, they want to own every second of your screen time.
The End of an Era: Reed Hastings Steps Down
On a personal note for tech fans, co-founder Reed Hastings has officially announced he won’t stand for re-election to the Board this June. He’s moving on to focus on philanthropy, leaving the ship in the very capable hands of Ted Sarandos and Greg Peters.
Quick Specs: Netflix Q1 2026 vs Q1 2025
| Metric | Q1 2025 | Q1 2026 (Actual) |
| Revenue | $10.5 Billion | $12.25 Billion |
| Operating Margin | 31.7% | 32.3% |
| Net Income | $2.89 Billion | $5.28 Billion |
| Ad Revenue Goal | – | $3 Billion (Projected) |
Netflix is clearly winning the streaming wars by moving faster than the competition. Whether it’s vertical videos or live sports, they are refusing to stay static.
Stay tuned because I’ll be doing a full hands-on review of the new vertical feed as soon as it hits my iPhone. Do you think a TikTok-style feed belongs on Netflix, or is it too much? Let’s discuss in the comments!
